Orange alert moves to red: these folks keep changing the name of the game but the moves are all the same: give us more power.

Latest from the DC Klepto-class (I’ve bolded the significant parts):

“As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systemic risks just as distress at banks can,” Geithner said. “The administration proposes legislation to give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context”

Geithner made it clear he believes the treasury secretary should be granted unprecedented power, after consultation with Federal Reserve Board officials, to take control of a major financial institution and run it. The treasury chief is an official of the administration, unlike the FDIC, which is an independent regulatory agency.”

More here.

Translation: Treasury/Goldman Sachs/banking cartel is going to get its hands on non-bank financial institutions that are bleeding…..